Godrej Agrovet
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Godrej Agrovet is currently navigating a challenging operational landscape characterized by adverse weather conditions and rising input costs, which have temporarily impacted its revenue growth and margins. However, management's strategic pivot towards an 'animal nutrition' model in the Animal Feed segment and the aggressive scaling of its branded poultry business, Yummiez, are expected to drive long-term growth. The integration of Creamline Dairy Products and the expansion of the Crop Care portfolio, including new product launches, further support this outlook. Despite facing headwinds in the Crop Protection segment, management remains optimistic about recovery through diversification. Vista's financial outlook reflects stable revenue growth and margins, underpinned by these strategic initiatives. The agribusiness sector's improving pricing power and government support for agriculture provide a favorable backdrop, although geopolitical risks and regulatory compliance remain watchpoints. Over the next 12-24 months, key opportunities include the successful execution of the portfolio transformation and enhanced operational efficiencies, while challenges may arise from inflationary pressures and market volatility
Why We Like This Stock
- Strategic shift towards high-ROCE, value-added products is expected to enhance margins and revenue stability
- Expansion of the branded poultry business and integration of Creamline Dairy Products are likely to drive growth
- Improving pricing power in the agribusiness sector supports a favorable long-term outlook
Things To Watch Out For
- Adverse weather and input cost inflation are currently impacting operational performance
- Regulatory compliance risks and geopolitical instability could pose challenges to growth
- The Crop Protection segment faces significant headwinds, which may affect overall revenue
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,561 | 9,383 | 10,233 | 10,771 | 11,276 |
| Profit Before Tax (Cr.) | 476 | 558 | 582 | 548 | 610 |
| PBT Margin | 5.0% | 5.9% | 568.7% | 5.1% | 5.4% |
| Net Profit (Cr.) | 355 | 407 | 429 | 405 | 422 |
| Earnings Per Share | 18.4 | 22.4 | 23.6 | 19.6 | 21.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BPWealth | ► Add | nan | 05-May-2026 |
| ICICI Securities | ▲ Buy | 900 | 05-May-2026 |
| Kotak Securities | ▲ Buy | 820 | 05-May-2026 |
| Motilal Oswal | ▲ Buy | 675 | 07-Aug-2026 |
Company Overview
Show Company Profile
Godrej Agrovet Limited, an agri-business company, provides products and services that enhance crop and livestock yields in India and internationally. The company operates through Animal Feed, Vegetable Oil, Crop Protection, Dairy, Poultry and Processed Food, and Other segments. It offers animal feed, such as cattle, poultry, and aqua feed. The company also engages in the oil palm cultivation with approximately 75,000 hectares of plantations across Andhra Pradesh, Telangana, Tamil Nadu, Goa, Maharashtra, and Mizoram producing crude palm oil, crude palm kernel oil, and palm kernel cake. In addition, it produces and markets crop protection products, including plant growth regulators, bio-stimulants, herbicides, insecticides, fungicides, and fertilizers and organic manures. Further, the company manufactures and markets processed poultry and vegetarian products under the Real Good Chicken name; vegetarian and non-vegetarian ready-to-cook products under the Godrej Yummiez name; and processes and sells milk and milk products under the Godrej Jersey brand. Additionally, it produces agrochemical active ingredients, intermediates, bulk and formulations, and pharmaceutical intermediates. The company was incorporated in 1991 and is based in Mumbai, India. Godrej Agrovet Limited is a subsidiary of Godrej Industries Limited.